Pharma 2020 – trends that are shaping the industry

1. 1
Pharma 2020 – trends
that are shaping the
industry
Brenda Canty
Senior Manager, Johnson & Johnson Labs

2. 2
There are still many opportunities despite
significant and growing challenges
• Economic environment
• Regulatory pressures
• Innovation threshold
• External barriers to
innovation
• Competition
Ongoing Challenges
• Significant unmet needs
• Personalized solutions
• Aging demographics
• Large under-served
populations
• Mobile populations
• Global warming
Future Drivers
2

3. 3
A growth market….
Ageing populations Terminal Diseases Chronic
Developed & Same diseases
Developing countries
Emerging markets more affluent
Leading cause of death now chronic disease
(e.g. diabetes)
Global warming Global weather patterns,
Man-made pollutants,
Vector borne diseases
Drug resistance New anti-infectives

4. 4
The bottom line…
Pharma operations Innovation slow & expensive
Market value slowing down
Industrialise R&D package products & services,
target specific disease
Incentivise R&D change legal & political
framework to promote
innovation

5. 5
The bottom line…
Cost of treatment Costs unsustainable
Cost risks of prevention
different to treatment
Governments reverse approach
Blurring healthcare
Boundaries

6. 6
By 2020, the pharmaceutical, payer &
provider value chains will be more integrated

7. 7
The bottom line…
Cost of treatment Costs unsustainable
Cost risks of prevention
different to treatment
Governments reverse approach
Blurring healthcare Pharma focus on providing full
Boundaries range of services spanning
healthcare spectrum
Shift towards Pay-for-performance, not
outcomes treatment
Help patients comply

8. 8
Major changes anticipated
Health care will shift in focus from
treatment to prevention.
Pharmaceutical companies will provide
total health care packages.
The current linear phase research &
development process will give way to in-life
testing and live licensing, in collaboration
with regulators and health care providers.

9. 9
Major changes anticipated
The traditional blockbuster sales model will
disappear.
The supply chain function will become
revenue generating as it becomes integral
to the health care package and enables
access to new channels.
More sophisticated direct-to-consumer
distribution channels will diminish the role
of wholesalers.

10. 10
By 2020, the Pharma business model will
have changed significantly
Source: PwC

11. 11
Fully diversified business model

12. 12
Implications for labs – layout & design
Labs 2015 Labs of the future

13. 13
Implications for labs - technology
Tech 2015 Tech of the future

14. 14
Implications for labs - analysts
Tech 2015 Tech of the future

15. 15
What capabilities, competencies & talent do
we need to achieve this?
Shape the external environment
New quality frameworks
Build Quality into lifecycle design
Scalable to help the business
grow
Customer/market insights
Connect with customers and
stakeholders
Understand our & their needs
Regional capacities & expertise
Serve emerging markets
• Strong people leaders
• Business acumen
• Creative thinkers
• Balanced risk taking (venturing)
• Ideation techniques
• Multi-lingual skills
• Strong data analytics
• Broad cross-quality knowledge
• Cross-functional agility
• Multi-sector experience
• Strong influencers & relationship builders
• Expertise in new technical areas
• Change agent mentality
• Project management
• Multi-cultural awareness
Capabilities Talent & Competencies

16. 16
The future
is promising,
but not promised…

17. 17
Q&A
1Confidential – For Internal Use Only